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Investor Reactions to the Meta Strategy Shift: Stability Over Moonshots

Meta Strategy Shift as Mobile and AI Take Priority

Meta has signaled a major shift in direction as it reduces its focus on virtual reality and pushes harder into mobile platforms. The company recently confirmed plans to reposition Horizon Worlds as a mobile first experience, clearly separating it from Quest VR headsets.

This move suggests Meta now sees smartphones as the fastest path to growth. Instead of relying on bulky headsets, the company wants to meet users where they already are.

Why Meta Strategy Shift Is Moving Away from the Metaverse Vision

The decision ties closely to financial pressure. Meta’s Reality Labs division has reported losses nearing 80 billion USD since 2020. As a result, the company laid off roughly 1,500 employees, about ten percent of the division. Meta also shut down several VR game studios and scaled back projects like the fitness app Supernatural.

Because of these cuts, Meta now prioritizes products that can scale faster and reach larger audiences. Mobile platforms fit that goal far better than VR hardware.

Horizon Worlds Finds New Life on Smartphones

Meta executives revealed that Horizon Worlds on mobile grew rapidly in 2025. User numbers reportedly increased more than four times year over year. In addition, creators built over 2,000 mobile first worlds during that period.

This growth convinced Meta that mobile offers stronger engagement than VR alone. Consequently, Horizon Worlds will now target competition with platforms like Roblox and Fortnite, rather than focusing purely on immersive VR spaces.

VR Is Not Dead, but Its Role Is Smaller

Despite the shift, Meta insists it has not abandoned VR completely. Instead, the company plans to refine its VR roadmap and narrow its audience focus. High end VR will continue, but it will no longer drive the company’s core strategy.

At the same time, Meta places greater emphasis on AI powered devices. CEO Mark Zuckerberg has repeatedly highlighted AI wearables as the next major platform.

Meta strategy shift

AI Wearables Show Real Market Success

Meta’s smart glasses, developed with EssilorLuxottica, have proven the strategy viable. Sales reached roughly seven million units in 2025, more than triple the combined sales of the previous two years.

Zuckerberg described the glasses as one of the fastest growing consumer electronics products in history. This success reinforces Meta’s belief that AI integrated hardware has more immediate potential than VR headsets.

A More Practical Future for Meta

Ultimately, Meta appears to choose practicality over ambition. By placing AI into devices people already use and shifting virtual worlds onto smartphones, the company aims to rebuild momentum.

The metaverse dream may not be gone, but it no longer leads the way. For Meta, mobile and AI now define the future.

 Origin: Techcrunch

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